Pharma exec Martin Shkreli found guilty of securities fraud
Martin Shkreli, the founder and former CEO of Turing Pharmaceuticals and Retrophin, was found guilty of three criminal counts related to securities fraud.
The charges don’t have anything to do with what first propelled Shkreli into the national spotlight, when Turing acquired the rights to Daraprim—a 62-year-old treatment for newborns and HIV patients—and promptly raised its price from $13.50 to $750. As the Washington Post summarized, he defended the 5,000 percent price hike as a “great business decision” and defiantly insulted his critics, earning him the nickname, “Pharma Bro.”
The case instead surrounding allegations from investors in two hedge funds and Retrophin. Prosecutors said Shkreli lied to investors to convince them to put millions of dollars into the companies by making false claims about his experience and his investment strategy. He lost much of the money, prosecutors said, and also directed some of it into Retrophin, even while sending investors false claims showing positive returns.
The verdict was mixed, as he was found not guilty on five other charges, but he could still face up to 20 years in prison. Read the full article at the link below:
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.